Who Is Responsible To Settle The Final Balloon Rental Under A Finance Lease Agreement

If you rent a van with a lease, you are entitled to the majority of the equity when the vehicle is sold. Since it is a lease, you also have the advantage of being able to offset up to 100% of your monthly rents with your taxable profits. However, if you wish to continue using the van after all payments have been made, you will pay the leasing company a nominal consideration of one month`s rental value or approximately for each subsequent year in which you keep the vehicle or part of it. This keeps it off your balance sheet and allows you to fully utilise the vehicle without compromising your ability to continue offsetting your rents with taxable profits. ** You have to pay a few months` rent in advance In most cases, yes. We will contact you approximately 3 months before the end of your van rental to discuss the options with you. One of these options (see question 3) is to refinance the final rent payment over a period of 6 to 48 months (depending on the initial duration of the contract), but not all finance companies offer it. Unfortunately, we are not able to transfer a regulated agreement on behalf of another person. Please contact us on 0333 0090231 if you would like to discuss this further. If you do not meet the maintenance requirements and a defect occurs on the vehicle, this may not be covered by the vehicle`s warranty and you will remain responsible for the cost. The lump sum payment at the end of the van lease is based on a residual value of the vehicle determined by the finance company. The residual value is calculated from the operating time and approximate mileage you provide to us.

However, there are no mileage restrictions with Van Leasing, although if you achieve significantly higher mileage than expected, this may result in the possibility of negative capital at the end of the term. Therefore, we recommend that you orient the offer as close as possible to your current mileage in order to prevent negative equity from occurring. This is our administration fee to hand over ownership of the vehicle to you once your final payment has been made. A lump sum payment is a lump sum due to the leasing company after all regular monthly repayments have been made. When the lease term expires, you can pay the lump sum payment for the purchase of vehicle d. By cheque – payable to RCI Financial Services. Please ensure that the contract number is indicated in the payment as a reference. Address – Customer Service, Building 1, Rivers Office Park, Denham Way, Rickmansworth, WD3 9YS. .

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